Tag: FinTech Jacob Parker-Bowles

While the travel industry has started to recover from the COVID-19 outbreak, new payment trends are beginning to emerge. The increasing convergence of travel and fintech is one of the most interesting developments in the industry in recent years.

The rapid emergence and evolution of new payment methods and technologies make it easier for travel companies to provide their customers with more comprehensive services. These changes are expected to significantly impact how money is handled in the travel industry next year.

New B2B payment options are available through open banking

One of the biggest changes in financial services is the emergence of open banking. This new service allows people to share their banking data with various third-party firms. It also will enable organizations to perform multiple functions, such as initiating transactions, without the need for the account owner to do so.

The emergence of open banking will allow travel sellers to pay out to providers such as airlines using various payment methods. Previously, they could only settle with industry settlement schemes, virtual cards, and cards. With the addition of open banking, the fourth major B2B payment method will be direct bank-to-bank transfers.

Soon, travel sellers will be able to use their PISPs to pay for their transactions using established banking rails. This will make bank-to-bank transfers one of the most common B2B payment methods in the industry.

Fintech services are being offered by travel companies

The biggest change that’s happening in the financial services industry is the ability of travel companies to provide their customers with more comprehensive services. For many years, the use of co-branded airline cards has been a successful driver of loyalty. With the emergence of new embedded banking technologies, the industry can now expand its offerings.

Due to the emergence of new banking technologies, travel companies are now able to expand their offerings by providing their customers with more comprehensive services. For instance, if an airline offers its customers the opportunity to earn points by paying their salary into their current account, then they’ll be able to use its loyalty program to reward them.

Before the emergence of new banking technologies, it was very difficult for travel companies to consider using virtual products and services. However, with the availability of white-label products and services from embedded finance providers, travel companies can now offer their customers more comprehensive services.

Buy now, pay later

Buy now, pay later (BNPL) is a popular payment method that allows retailers to extend a credit line to their customers. Through a quick risk assessment, a merchant can then decide to give their customers a line of credit, which allows them to pay in several installments. It’s a very smooth experience for both the consumers and the bank.

BNPL is the latest version of credit that’s designed for the digital age. It’s ideal for the travel industry as it enables flexible payment methods, which is very important for the many people who travel during the holiday season.

One of the biggest advantages of BNPL is its ability to allow travel merchants to offer their customers the opportunity to make a higher-value purchase. With flexible credit, they can also expand their options by adding additional services.

Should You Update your Approach to Fintech?

By Jacob Parker-Bowles

On July 25, 2022

In FinTech, Jacob Parker-Bowles

If you work in the banking industry, you may want to take a page from the fintech book. When a commercial bank introduces a new financial product, it’s the result of six months or more of planning. Fintech operates a little differently, with new products and services launched for public consumption almost as soon as the idea is approved. The speed at which new fintech products and services are introduced helps those companies to stay ahead of competitors, such as traditional banks.

Looking Toward the 4th Industrial Revolution
While a new industrial revolution was already well on its way, the Covid-19 pandemic sped up the evolution of our society. A need for more remote services introduced advances in digitization. This created a need for new infrastructures in every industry, including the banking and financial fields. While banks still have to work with regulatory agencies, those agencies will be forced to loosen their restrictions to help banks compete with fintech companies. Fewer regulations will help traditional banks remain competitive as fintech changes how consumers manage their money.

Banks will also have to change. Rather than waiting to offer new services after competing financial institutions have already offered them, traditional banks will have to be at the forefront of innovation. By taking the risks of offering new technology-based services first, these institutions can gain a much-needed competitive edge. They will also be able to provide better service to their customers.

Fintech Isn’t the Enemy
While banks do compete with fintech companies, a forward-looking bank will instead reach out to those companies to form partnerships. By incorporating fintech products and services into your bank, you can offer more state-of-the-art services to your customers. Many tech-savvy consumers will look for fintech that interests them. By offering those innovations, you will encourage those consumers to conduct their finances with your institution.

It Will Take Work
Adding fintech services for your customers will still come at a cost, but you should look at this as an investment in the future of your bank. You’ll have to enhance your bank’s infrastructure to accommodate new technology.

You may also need to reorganize how you utilize personnel. Rather than assigning one or two people to perform specific tasks, your fintech-friendly bank will operate more efficiently through the use of teams. A team-based structure will promote a greater emphasis on customer satisfaction, while also helping team members to strengthen their expertise and develop new skills.

How Competitive is Fintech?

By Jacob Parker-Bowles

On July 25, 2022

In FinTech, Jacob Parker-Bowles

The past decade might be called “the Rise of Fintech.” The coming decade may just very well be called “The Age of Fintech.”

Fintech, short for financial technology, has exploded across the globe and asserted itself as one of the most powerful sectors in commerce and business development. Already, a remarkable 64% of world consumers are now using at least one form of fintech product.

That’s exciting for investors and developers. However, tens of thousands of entrepreneurs are jumping in as they hope to create the next great fintech app and get their slice of the pie.

That means fintech is getting crowded and more competitive month by month. Keep in mind, however, that the issue of “competition” is a multilayered and multidimensional quality.

That is, fintech competition is not only heating up between new start-up entities. It is also challenging old institutions, such as legacy banks and financial institutions.

To the latter, fintech is a threat to “business-as-usual.” That’s because fintech naturally competes with traditional banks in numerous ways. Take crowdfunding, for example. This new tech-enabled form of raising cash for business start-ups cuts banks right out of the picture.

Today, even a person with dicey credit can launch a campaign on Kickstarter and go directly to tens of thousands of small investors to get the cash they need. One also can bypass a bank for obtaining basic tools, like a checking account or a merchant account for business. These needs are easily handled by simple and inexpensive-to-use fintech apps.

Be aware that the degree of competition among new fintech firms varies greatly by geography and against the relative maturity of established financial institutions.

Speaking of “established financial institutions,” that is probably the way we can define PayPal today. But just a few years ago, PayPal was one of the early services that could be truly defined as fintech and stood nearly alone. Today it faces fierce competition from numerous players both big and small.

Just a few examples of PayPal’s competition are Google Wallet, Payoneer, Wepay, 2Checkout, Authorize.net, Skrill, Intuit, Propay, Dwolla – and that’s just for starters.

So yes, fintech remains hot -– and a hot market means stiff competition.

Financial Technology